How can I build up my credit. is paying my utility bills enough?

Question

I pay my bills directly with my bank account. is that how I can build my credit

Answer 1

there are a couple of ways you could start building credit, you could get a small personal loan which you might need a cosigner or the best way will be getting a credit cards, you could get a credit card and use it for your every day expenses but make sure you pay in full at the end of the month that way it will show pay in full everytime the credit card company reports to the credit beuros. At the begining you will only be approved for the lower end credit cards but once you build credit in about 6-9 months you should be able to apply for a better card with better benefits such as free miles or cash back. Check out www.fastcreditcardapprovals.com and go under bad or no credit section and you will find a few choices. Unless you are a student then apply for a student credit card this cards have no annual fee and lower rates.

http://fastcreditcardapprovals.com/

Answer 2

Utility bills can secure your credit, but really nothing like having your own credit card will do.  And you do not build credit with a debit card:  

Here is the difference between credit cards and debit cards:

http://www.buildcreditblog.com/credit-ca...

Answer 3

Just take credit and pay it in time, and your credit score will be set. To avoid common mistake while buiding credit, I recommend this one - http://freecreditreport.hotusa.org - to monitor changes in you score and pre-estimate future scores for different scenarios of payments.

Answer 4

Utilities do not report good payment to the credit bureau- they only report non-payment.  So, a good record with your utility payment will not build your credit.  

Same goes with your checking account.  Banks don't report good-standing accounts to the credit bureau.  

To build your credit, you need to establish some sort of credit, and pay on it each and every month.  The more months you pay on time, the more it will increase your credit score.  

Maybe get a department store credit card, and use it responsibly.  Pay on that for 6-8 months, then apply for a Visa Credit Card through your bank.  In time, you will build your credit score.

Answer 5

No, your utility bills typically only come into play if you don't pay them.

You build credit by having open lines of credit (credit cards, auto loans, home loans, etc.) and managing the payments/accounts wisely.

Answer 6

The only thing that counts for good in your credit file is having credit.  A debit card is not a form of credit.  

Credit can be in the form of a loan, a credit card, or a mortgage.

If you have no credit, then you need to apply for a simple card to start with.

If you have no unpaid bills that will show up on a credit report, then go into a local business.  American Eagle is easy to get.

The limit will be low, but, it will start you on a journey of building credit.

However, on the dark side, the bills that do not show up on your report in a good way can show up as a negative if you don't pay them.

Good luck.

Answer 7

Only paying utility builds will not help with building your credit, this is a good article to read on building your credit, http://www.monitorbankrates.com/how-to-b...

Answer 8

You build up credit by taking out loans and paying them back with interest.

If you don't need the loan, but are trying to use them as a way to build up credit, then you are, in essense, saying "Here's some of my hard earned cash.  I want to buy some FICO points."

Answer 9

To get credit you have to borrow and pay back.  Your banker should be able to help you.  They have programs where you can start with a secured credit card then go to a credit card.  Not a debit card.

Don't open up charge cards in stores, that just makes you subject to really high rates.  Buy a car or take out your student loans and pay them off.  Credit unions give good rates.

Answer 10

No, paying utility bills does not build up credit at all.  (However, not paying utility bills does bring down credit.)

Debit cards also do not build up credit at all.  (However, overdrawing your account using a debit card may bring down your credit.)